GBPUSD had been keeping its positive momentum throughout the entire week but failed to continue growing on Friday.
The British Pound is retreating against the USD at the end of this trading week. The current quote for the instrument is 1.3257.
The statistics published in the morning showed that the Retail Sales in the United Kingdom added 1.2% m/m in October and that’s an excellent result because the expected reading was zero. According to the revised data, in September the indicator expanded by 1.4% m/m. The positive momentum continues and that’s a good signal for the country’s economy
However, a stable impulse to support the British economy strongly depends on consumer sentiment. Due to Brexit, which is rather stressed and unclear, the retail sales in the country might slowly fall in the future just because no one can be sure of how everything is going to happen. Lack of clear directions in relations with the European Union and more complicated conditions for the British companies early in 2021 may alarm consumers, thus directly influencing their spending.
At the same time, the GfK Consumer Confidence in the United Kingdom showed -33 points in October, the same as expected, after being -31 points in September, and that’s a good signal that provides insight into the behavior of an average consumer in the future. They will cut down their expenses.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.